1. John is a project manager of the NKL Project for his company. John has discovered that to
create a portion of his project deliverables, his team could complete the project work for
$17,650, with a monthly fee of $4,334. A vendor that John has worked with in the past reports
that they could complete the same work for $13,450 but the monthly support for their solution is
$6,000. If John elects to create the solution in-house rather than turn to the vendor, how long
must the solution be in use to be more cost effective than the vendors? (5 points)
2. As a project manager and PMP candidate, you need to recognize the characteristics of each
contract type. Heres a quick table listing the seven contract types. Write a quick description of
each contract type to help you remember the contracts and their characteristics. In the final
column, identify who carries the risk of cost overruns: (5 points)
ContractCharacteristicsRisk OwnerFirm Fixed PriceCost plus incentive feeFixed-Price Incentive
feeFixed-price with economic price adjustmentCost plus fixed feeTime and materialCost plus
award fee.
1. John is a project manager of the NKL Project for his company. Joh.pdf
1. 1. John is a project manager of the NKL Project for his company. John has discovered that to
create a portion of his project deliverables, his team could complete the project work for
$17,650, with a monthly fee of $4,334. A vendor that John has worked with in the past reports
that they could complete the same work for $13,450 but the monthly support for their solution is
$6,000. If John elects to create the solution in-house rather than turn to the vendor, how long
must the solution be in use to be more cost effective than the vendors? (5 points)
2. As a project manager and PMP candidate, you need to recognize the characteristics of each
contract type. Heres a quick table listing the seven contract types. Write a quick description of
each contract type to help you remember the contracts and their characteristics. In the final
column, identify who carries the risk of cost overruns: (5 points)
ContractCharacteristicsRisk OwnerFirm Fixed PriceCost plus incentive feeFixed-Price Incentive
feeFixed-price with economic price adjustmentCost plus fixed feeTime and materialCost plus
award fee
